Israel-based Sarine Technologies reported a net loss of US$ 2.8 million on revenues of US$ 42.9 million (-27%) for the year that ended 31st December 2023 due to the economic headwinds in the U.S. and China markets and disruption caused by increasing consumer demand for lab-grown diamonds (LGD). In 2022, Sarine had recorded a net profit of US$ 8.8 million on revenues of US$ 58.8 million.

“In the primary U.S. market concerns of a looming recession dampened consumer sentiment for much of the year, easing towards year-end. In China, the second most important market for diamond jewellery, negative news relating primarily to the real-estate market and fears of possible banking insolvencies impacted consumer spending and continue to do so. In addition, the rapid expansion of the LGD segment in the U.S. market in 2022 and 2023 disrupted demand for natural diamonds,” Sarine said.

Sarine’s annual revenues from India dropped 27% to $30.3 million, while those from Africa halved to $13.6 million.

The company was hopeful that the disruption by LGDs may be waning due to the sharp fall in LGD retail prices (lowering retailers’ margins) and possible growing consumer recognition that LGD are not always substantially more environmentally friendly.

The lower inventory of natural polished diamonds at FY2023 year’s end and the significant 15-20% reduction in natural rough prices in January 2024 may further stabilise the diamond industry, it noted.